House prices and its impact

Home prices in Britain slid by 1.5% in February, according to figures from a couple of the UK's largest lenders. This follows 7 monthly rises in a row.

 But simultaneously, the annual rate of change, which is a comparison of the average price for the previous a quarter with that of the same period Twelve months ago, showed the biggest increase since Jan 2008, and stood at 4.5%. The average UK property is now worth slightly over £165,000, a dip of almost £2,500.

 The latest fall in UK house prices has been accredited partly to the snowy weather at the start of the year, and partly to the end of a stamp duty  holiday for some properties, which has meant that this tax has become due again on properties worth £125,000 or more.

 Current UK home prices are nowhere near the level they topped at during the summer of 2007. Indeed, between August 2007 and spring last year, they dropped by almost 1 / 4. Nevertheless since early 2009 there's been a modest overall increase of around 8%, attributable to low rates, a deficit of places for sale and improved cost.

 But the beginning of 2010 has also been marked by significant changes in supply and demand in the housing market. And there are indications the recently improved market conditions have encouraged more owners to put their properties on the market.

 Because of this, the amount of properties available for sale increased for the 2nd successive month in January. Some commentators are commending this increased supply, combined with the poor weather and modified stamp duty  rules, played a role in halting the upward march of British house prices last month.

 Equally, some economic gurus are counseling that there might be further falls in home prices in England in the months ahead. Despite prophecies the BoE will keep interest rates low until next year, the actuality is that, whatever the IR, low takings growth, high unemployment and tight credit conditions will limit home price increases in the near future.

 At the exact same time, the gap between revenues and UK home prices has widened, and this is also sure to affect the market. Figures from one major bank show that the price of a home is now, normally 4.84 times the average full-time income for a male worker. This compares with 4.32 a year ago.
 So nobody could reject that there remains a degree of doubt in the housing market, with prices in a state of continued flux. The simple fact of a forthcoming general election can only add to this feeling. Full recovery in the British home market may not take place until 2012, with London and the south east certain to be the 1st areas to see real and lasting increases in home prices.

 All this means that there are still some superb deals to be had for first time purchasers, those not in a chain and those prepared to hold their nerve and look to the longer term. It's worth checking out one of many online realtors and surveyors available, to request a fast and correct valuation of your property.

 If you've a property to sell, constant variations in UK home prices mean that only a valuation will really tell you how much your house is worth in today's market.